Trading For A Living - Fool's Paradise Or Actual Objective?
To be able to do trading for a living is a dream of countless part-time traders. One only has to look at the numerous seminars, training sessions and trading bush camps these traders attend to understand how intensely they want to do this. The lifestyle of a full-time trader looks so perfect: you never have to leave your desk, never have to face an angry boss. You can take leave whenever you want. You determine your own salary.
Without the right set of tools, this will stay an elusive dream for all those hapless part-time traders though. Let us take a look at what you will need to make it a reality.
The very first thing you have to understand right from the start is that you will not be trading against other traders. Neither will you be trading against the market. You will be trading against yourself Your own strengths and weaknesses will go with you into trading and determine whether you are successful or not.
You can study hundreds of trading manuals, do all the courses and buy all the top software packages, but if you are not able to control your trading weaknesses, they will control you. If you are not able to let go of a losing trade, if you hang on to it every time because you are the type of person that can't face a loss, this will eventually ruin your trading career.
The same is true if you do not develop the discipline to let a winning trade ride - to allow it to reach its full potential and make some serious money. Selling winning trades the moment they have made a little money and staying in losing trades forever are the two major causes of failure for newbie traders.
Another decision you have to make is which time frame you want to trade in. Do you want to be a day trader, do swing trading or be a long term trader? This will also largely be determined by your personality type and your approach to risk. Day trading is much more risky, but if you like the adrenalin rush and you can stand numerous small losses while you wait for one big win, it should work for you.
You will need to decide whether you are going to trade in shares, in commodities or in currencies. Each one of these requires a special set of skills and tools. Share trading will require that you study the financial statements of the companies involved and the underlying market conditions for those companies. With commodity trading you have to get familiar with the market in that type of commodity. The same goes for currency trading.
The right tools are of course very important as well. To start off with you need knowledge. You need to get familiar with reading financial statements and analysing charts. You need to understand technical indicators, how to use them and how to interpret movements in these indicators
Furthermore you need to register with a company that will provide you with the latest prices for the instruments you want to trade in. Many free services provide delayed prices - which is good enough if you trade in a longer time frame. If you want to get involved in day trading, you absolutely have to make sure you get live prices though.
Trading for a living can be a reality sooner than you think. Approach this in a systematic way. Start with yourself, get yourself ready, and then get the right technical tools. - 23196
Without the right set of tools, this will stay an elusive dream for all those hapless part-time traders though. Let us take a look at what you will need to make it a reality.
The very first thing you have to understand right from the start is that you will not be trading against other traders. Neither will you be trading against the market. You will be trading against yourself Your own strengths and weaknesses will go with you into trading and determine whether you are successful or not.
You can study hundreds of trading manuals, do all the courses and buy all the top software packages, but if you are not able to control your trading weaknesses, they will control you. If you are not able to let go of a losing trade, if you hang on to it every time because you are the type of person that can't face a loss, this will eventually ruin your trading career.
The same is true if you do not develop the discipline to let a winning trade ride - to allow it to reach its full potential and make some serious money. Selling winning trades the moment they have made a little money and staying in losing trades forever are the two major causes of failure for newbie traders.
Another decision you have to make is which time frame you want to trade in. Do you want to be a day trader, do swing trading or be a long term trader? This will also largely be determined by your personality type and your approach to risk. Day trading is much more risky, but if you like the adrenalin rush and you can stand numerous small losses while you wait for one big win, it should work for you.
You will need to decide whether you are going to trade in shares, in commodities or in currencies. Each one of these requires a special set of skills and tools. Share trading will require that you study the financial statements of the companies involved and the underlying market conditions for those companies. With commodity trading you have to get familiar with the market in that type of commodity. The same goes for currency trading.
The right tools are of course very important as well. To start off with you need knowledge. You need to get familiar with reading financial statements and analysing charts. You need to understand technical indicators, how to use them and how to interpret movements in these indicators
Furthermore you need to register with a company that will provide you with the latest prices for the instruments you want to trade in. Many free services provide delayed prices - which is good enough if you trade in a longer time frame. If you want to get involved in day trading, you absolutely have to make sure you get live prices though.
Trading for a living can be a reality sooner than you think. Approach this in a systematic way. Start with yourself, get yourself ready, and then get the right technical tools. - 23196
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posted by X - Men @ 10:01 AM
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